Core Viewpoint - Netflix co-CEOs Ted Sarandos and Greg Peters are advocating for the acquisition of Warner Bros. Discovery, addressing concerns about job cuts and the future of theatrical releases amid a rival bid from Paramount Skydance [1][2][3] Acquisition Details - Netflix is pursuing a $72 billion deal that includes HBO, HBO Max, and Warner Bros. Studios, while Paramount has made a hostile bid valuing Warner Bros. Discovery at approximately $78 billion with an all-cash offer of $30 per share [3][4] - The Netflix offer amounts to $27.75 per share, with the argument that Warner Bros. Discovery shareholders will ultimately receive more than $30 per share when the company's cable assets are spun off [6] Industry Impact - The co-CEOs emphasized that the deal is focused on growth, aiming to strengthen one of Hollywood's iconic studios and support jobs in the film and TV production sector [2][3] - Concerns have been raised regarding regulatory approval, particularly since Netflix would own the top two streaming services if the deal goes through [8][10] Competitive Landscape - The CEOs noted that a potential Netflix-Warner Bros. combination would have a smaller view share percentage compared to YouTube or a Paramount-Warner Bros. partnership, indicating a competitive landscape in the streaming market [9] - Senator Elizabeth Warren has criticized both deals, labeling Paramount's offer as a significant antitrust concern and previously describing Netflix's bid as an "anti-monopoly nightmare" [9][10] Historical Significance - If the acquisition is successful, Netflix would gain control of Warner Bros., a studio with a rich history, including classics like "Casablanca" and major franchises such as "Harry Potter" and "Lord of the Rings" [10][11] - Additionally, Netflix would acquire HBO, recognized as a gold standard in television with acclaimed series like "The Sopranos" and "Game of Thrones" [11]

Streaming Industry Trends - Streaming wars are intensifying, despite billions of dollars being invested in new films and TV shows [1] - Audiences are increasingly consuming content produced outside of Hollywood, often by amateur creators [1]

So, our next guest is going to be weighing in on Disney's billion-dollar deal with Open AI, dueling bids for Warner Brothers, and so much more this morning. Walter Isacson is here. Great to see you.Of course, Walter's Carella Weinberg advisory partner, Twolane University, history professor, CNBC contributor, uh, amazing writer and allaround great friend of ours. >> Help us understand. Let's go AI first.>> Obviously, >> you saw the the Disney story. Were you surprised. And what do you think it portrays.I was ...

Making sense of the risky Netflix-Warner Bros. deal https://t.co/2Adra4Q6sk ...

Core Insights - The demand for power in the US is expected to grow at a rate five to ten times faster over the next decade compared to the previous one, driven by the booming AI development [1] - Major US companies, including tech giants and others, are entering the energy trading market to manage their energy needs and mitigate risks associated with fluctuating electricity prices [2][3] Group 1: Industry Trends - The average price for electricity in the US increased by 7% in September compared to the previous year, with natural gas prices rising over 60% in the same period [5] - Companies with high energy consumption, such as Microsoft and Disney, are incentivized to sign long-term contracts to secure stable electricity prices [6] Group 2: Company Actions - Meta, Microsoft, and Apple have received licenses from the Federal Energy Regulatory Council to engage in wholesale power trading to address their energy demands [2] - The Walt Disney Company has also begun hiring for an energy trader position, indicating its entry into the energy trading space [2] Group 3: Risk Management - Companies face increased market vulnerability as demand for power rises, prompting them to adopt energy trading functions to mitigate risks [3] - Utility companies are tightening contract terms, requiring firms to commit to certain power quantities, which can lead to excess costs if actual usage is lower [4]

Core Viewpoint - Paramount Skydance is attempting to acquire Warner Bros. Discovery (WBD) through a $30-a-share cash bid, which has been rejected in favor of a $27.75-a-share offer from Netflix, leading to a hostile appeal to shareholders by the Ellisons [2][4]. Group 1: Bid Details - The Ellisons' bid for WBD is positioned as superior, claiming that their offer effectively values the company at $30.75 per share when including the sale of cable properties [2]. - The Netflix deal has been criticized by the Ellisons as risky, particularly regarding regulatory concerns and the optimistic valuation of cable assets like CNN, which they believe is worth less than implied [3][7]. Group 2: Financing Concerns - Larry Ellison is reportedly contributing $12 billion to the bid, which is less than 5% of his net worth of $243 billion, raising questions about the financial backing of the proposal [4][5]. - In contrast, Middle Eastern sovereign wealth funds have pledged double that amount, which has sparked concerns about foreign influence over U.S. media assets [5][12]. Group 3: Shareholder Engagement - The Ellisons are directly appealing to WBD shareholders, arguing that their offer was not given a fair hearing by the WBD board and that the spun-out cable assets are overvalued [7][11]. - Notable investors, including media investor Mario Gabelli, have pledged their shares to the Ellisons, indicating support for the cash component of the bid despite the source of funding [12][13]. Group 4: Market Reaction - Since the beginning of the bidding war, shares of WBD have increased by 150%, reflecting investor interest despite the ongoing conflict between the bidding parties [17].

Disney is investing $1 billion in open AI. The brand is known for being this safe place for kids. It's not like social media. It's not like YouTube.So why are they partnering with this company that's known for generating AI slop. If you focus on engagement, the licensing deal does make sense. As kids and creators play with videos and images on Chat GPT and Sora, it means they're spending more time with Disney's characters from the Avengers, from Star Wars, from Pixar.So, not only is Disney benefiting from O ...

Bloomberg Fear is drifting out of the corporate-bond market again, even if the risks aren’t. US high-grade spreads touched 0.76 percentage point earlier this week, their tightest levels since October and close to their highest valuation in decades. They’ve been narrowing since late November. The cost of hedging in the North American high-grade credit derivatives market has been declining in recent weeks as well. Most Read from Bloomberg But some investors and strategists see storm clouds ahead. Heav ...

The contest between Netflix and Paramount has juicy plot ingredients, from an ambitious billionaire to mysterious Saudi investors and a cameo from the American president’s son-in-law. But the show has only just begun https://t.co/bi699t4e4OPhoto: Shutterstock https://t.co/89X2hzpXWK ...

Netflix is turning empty department stores in the US into immersive playgrounds where you can experience “Stranger Things” and other hit shows. Read more: https://t.co/kHgPlEiUQQ📷: Justin Clemons/Netflix https://t.co/5Y4mfAGsfK ...